The Central Bank of Kenya has announced an increase in interest rates by 0.75% to 9.50% as a measure to curb inflation. The decision was made in response to growing concerns of rising inflation in the country, which has been attributed to geopolitical risks and the impact on the domestic economy.
In a statement released today, the Central Bank of Kenya signaled a further tightening of monetary policy to combat inflation. The statement highlighted the need to maintain price stability and ensure that inflation remains within the government’s target range of 2.5% to 7.5%.
The move to raise interest rates is expected to have an impact on borrowing costs, with commercial banks likely to increase their lending rates. This could lead to a slowdown in borrowing and spending, which could help to ease inflationary pressures in the economy.
The Bank’s decision to increase interest rates is expected to be welcomed by investors, who have been concerned about the impact of inflation on the Kenyan economy. The move is also expected to help restore confidence in the country’s financial markets, which have been affected by recent geopolitical risks.